HomeMy WebLinkAboutStaff Report 182-10TO: HONORABLE CITY COUNCIL BUDGET
'10 -'11
ATTENTION: FINANCE COMMITTEE ,
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: APRIL 6, 2010 CMR:182:10
REPORT TYPE: CONSENT
SUBJECT: Adoption of a Resolution Amending Utility Rate Schedule D-l
(Storm and Surface Water Drainage) To Increase Storm Drain
Rates by 2.6% Per Month Per Equivalent Residential Unit for Fiscal
Year 2010-11
RECOMMENDATION
Staff recommends that Council adopt the attached resolution (Attachment A) amending Utility
Rate Schedule D~1 (Storm and Surface Water Drainage), to implement a 2.6% rate increase to
$11.23 per month per Equivalent Residential Unit for Fiscal Year 20 1 O~ 11.
BACKGROUND
On April 26, 2005, a majority of Palo Alto property owners approved a ballot measure
authorizing an increase in the monthly Storm Drainage Fee to fund storm drain capital
improvements and augmented maintenance. Council certified the results of the ballot proceeding
on May 9 2005. The approved ballot measure contained an annual fee escalator clause that
permits the Council to consider raising the Storm Drainage Fee each year to account for
inflationary cost increases. Specifically, the ballot measure stated that:
"In order to offset the effects of inflation on labor and material costs, the proposed
fee increase would be subject to annual increases beyond the initial $10.00 per
Equivalent Residential Unit (ERU) rate as of July 1 of each year, starting in 2006.
Inflation adjustments would be based' on the lesser of the local rate of inflation
(based on the change in the Consumer Price Index [CPI] for the San Francisco~
Oakland-San Jose CMSA, published by the United States Department of Labor,
Bureau of Labor Statistics) or 6 percent. The City Council would have the
authority and discretion to implement inflation adjustments on an annual basis as
part of the City budget process."
On May 9, 2005, Council approved a resolution increasing the Storm Drainage rate
schedule to $10.00 per month per ERU, effective June 1,2005. Council has approved an
inflation-based increase in Storm Drainage rates each year since 2005, except for FY
2009-10, when there was no increase in the CPt The Council-approved rate for FY 2009-
10 is month ERD.
CMR:182:10 Page 1 of2
DISCUSSION
Staffhas determined from Bureau of Labor Statistics records that the local Consumer Price Index
increased by 2.6% between December 2008 and December 2009. Staff recommends that the
Storm Drainage Fee be increased by this amount in order to keep fund revenues consistent with
labor and material cost increases. In order to enact the Storm Drainage Fee increase, Council
must approve the attached resolution amending Utility Rate Schedule D-l (Storm and Surface
Water Drainage). The new rate for the Storm Drainage Fee will be $11.23 per month per ERU.
Single-family residential properties are billed a monthly amount based on parcel SIze, III
accordance with the following table:
0.8 ERU
1.0ERU
1.4 ERU
Commercial, industrial, institutional, and multi-family residential properties are billed on a
monthly basis at a rate of 1.0 ERU for each 2,500 square feet of impervious surface on the
parceL
TIMELINE
The Storm Drainage Fee increase will take effect on July 1,2010.
ENVIRONMENTAL REVIEW
Modification and approval of utility rate schedules for the purpose of meeting operating
expenses is statutorily exempt from California Environmental Quality Act (CEQA) review
pursuant to Public Resources Code Section 15273(a).
ATTACHMENT
Attachment: Resolution Amending Utility Rate Schedule D-l (Storm and Surface Water
Drainage)
PREPARED BY:
DEP ARTMENT HEAD:
CITY MANAGER APPROVAL:
cc: Storm Drain Oversight Committee
Palo Alto Chamber of Commerce
CMR:182:10
~;;;. J6RESI~
GLENN S. ROBERTS
Director of Public Works
Page 20[2
Not Yet Approved Attachment A
Resolution No. ---
Resolution of the Council of the City of Palo Alto Amending
Utility Rate Schedule D-l (Storm and Surface Water
Drainage) to Increase Storm Drain Rates by 2.6% Per Month
Per Equivalent Residential Unit for Fiscal Year 2010-11
The Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rate Schedule D-1 (Storm and Surface Water Drainage) is hereby amended to read in
accordance with sheet D-1-1, attached hereto and incorporated herein. The foregoing Utility
Rate Schedule, as amended, shall become effective July 1, 2010 and shall expire on June 1,
2011.
SECTION 2. The Council finds that this rate increase is being imposed to offset the
effects of inflation on labor and material costs pursuant to the annual inflationary fee escalator
provision of tile Storm Drainage Fee ballot measure, which was approved by a majority of Palo
Alto property owners on April 26, 2005.
SECTION 3. The Council finds that the revenue derived from the authorized
adoption enumerated herein shall be used only for the purpose set forth in Article VII, Section 2,
of the Charter of the City of Palo Alto.
SECTION 4. The Council finds that modification and approval of this change to the
Utility Rate Schedule D-1 (Storm and Surface Water Drainage) for the purpose of meeting
II
II
II
II
II
II
II
II
II
100330 jb 6051136
Not Yet Approved
operating expenses is statutorily exempt from California Environmental Quality Act (CEQA)
review, pursuant to Public Resources Code Section lS273(a).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Deputy City Attorney City Manager
Director of Public Works
Director of Administrative Services
100330jb 6051136
GENERAL STORM AND SURFACE WATER DRAINAGE
UTILITY RATE SCHEDULE D-l
A. APPLICABILITY:
This schedule applies to all storm and surface water drainage service, excepting only those users and
to the extent that they are constitutionally exempt under the Constitution of the State of California or
who are determined to be exempt pursuant to Rule and Regulation 25.
B. TERRITORY:
Inside the incorporated limits of the city of Palo Alto and land owned or leased by the city.
C. RATES:
Per Month:
Storm Drainage Fee per Equivalent Residential Unit (ERU) ....................................................... $11.23
D. SPECIAL NOTES:
1. An Equivalent Residential Unit (ERU) is the basic unit for computation of storm drainage fees
for residential and non-residential customers. All single-family residential properties shall be
billed the number ofERUs specified in the following table, based on an analysis of the
relationship between impervious area and lot size for Palo Alto properties.
1.0ERU
1.4 ERU
All other properties will have ERU's computed to the nearest 1110 ERU using the following
formula:
No.ofERU Impervious Area (Sq. Ft.)
2,500 Sq. Ft.
2. For more details on the storm drainage fee, refer to Utilities Rule and Regulation 25.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No.O-1-1 dated 7-1-2008
{End}
Effective 7-1-2010
Sheet No.D-l-l